Slide 1: Analyst Conference Call Q2 2023
Analyst Conference Call Q2 2023 July 28, 2023 1 July 28, 2023 | BASF Analyst Conference Call Q2 2023
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the fu
Slide 3: Global chemical production stagnated compared with the prior-year quarter
Global chemical production stagnated compared with the prior-year quarter Chemical production compared with prior-year quarter1 % North America EU Mainland China Asia excl. mainland China 7.1 3.7 1.2 Q2 2022 Q2 2023 -0.9 -2.6 -3.1 Q2 2022 Q2 2023 -9.8 Q2 2022 Q2 2023 -10.8 Q2 2022 Q2 2023 Growth rat
Slide 4: Stock levels in manufacturing below average and within range of past inflection points
Stock levels in manufacturing below average and within range of past inflection points in Western Europe and North America Stocks of purchases per region1 Western Europe North America Asia Pacific 60 60 60 55 55 55 50 50 50 45 45 45 40 40 40 35 35 35 30 30 30 Stocks of purchases Long-term average Tu
Slide 5: Q2 2023: BASF's earnings declined in a tough market environment
Q2 2023: Compared with the strong prior-year quarter, BASF’s earnings declined in a tough market environment Sales development Volumes Prices Portfolio Currency In Q2 2023, BASF faced low demand from key customer Q2 2023 vs. Q2 2022 -9.9% -11.8% -0.3% -2.7% industries, except for automotiv
Slide 6: BASF's new Verbund site project in Zhanjiang is progressing well
Preparing for the future: BASF’s new Verbund site project in Zhanjiang is progressing well Project execution on track First downstream plant (engineering plastics) started up in June 2022 August 2022; first “made in Zhanjiang” products delivered to customers in H2 2022 Next downstream plant (TPU
Slide 7: BASF's major projects in the United States
Preparing for the future: BASF’s major projects in the United States Third and final phase of the MDI expansion project at the Verbund site in Geismar, Louisiana, is fully on track Additional upstream units and a splitter to increase production capacity to approximately 600,000 metric tons per yea
Slide 8: First co-located battery materials and recycling center in Europe
Preparing for the future: BASF is the first company to establish a co-located battery materials and recycling center in Europe BASF is the first company to establish a co-located battery materials and recycling center and close the loop in the European battery value chain New plant is first prod
Slide 9: BASF Group Q2 2023: Key financial figures
BASF Group Q2 2023: Key financial figures Sales EBITDA before special items EBIT before special items Q2 2023 vs. Q2 2022 Q2 2023 vs. Q2 2022 Q2 2023 vs. Q2 2022 €17,305 million €1,944 million €1,007 million -24.7% -41.0% -57.0% Net income Operating cash flow Equity ratio Q2 2023 vs. Q2 2022 Q2 2023
Slide 10: Q2 2023: Earnings declined, mainly due to lower contributions from upstream businesses
Q2 2023: Earnings declined, mainly due to lower contributions from upstream businesses compared with a strong prior-year quarter BASF Industrial Surface Nutrition Agricultural BASF Group Chemicals Materials Solutions Technologies & Care Solutions Other Group EBIT before special items Q2 2023 vs. Q2
Slide 11: Cash flow development in Q2 2023 and H1 2023
Cash flow development in Q2 2023 and H1 2023 Q2 2023 H1 2023 Q2 2023 vs. Q2 2022 Million € Million € Cash flows from operating activities 2,500 2,500 increased by +€950 million to €2.2 billion; 2,178 2,000 changes in net working capital led to 2,000 a cash inflow of €797 million 1,500 1,163 Paym
Slide 12: Strong balance sheet
Strong balance sheet Balance sheet June 30, 2023, vs. Dec. 31, 2022 Billion € 83.5 Total assets decreased by 84.5 83.5 84.5 €1.0 billion to €83.5 billion Noncurrent assets almost unchanged at €46.9 billion 39.3 40.9 46.9 47.1 Equity Current assets decreased by €807 million to €36.6 billion Non
Slide 13: Increasing competitiveness: Focus on costs and cash
Increasing competitiveness: Focus on costs and cash Program details presented in February 2023 Cost savings program with focus on Europe: Expected annual cost savings of >€500 million by the end of 2024 confirmed; Cost savings Adaption annual run rate of >€300 million expected to be achieved by th
Slide 14: Carve-out of mobile emissions catalysts and precious metals services businesses completed
Optimizing structures: Carve-out of mobile emissions catalysts and precious metals services businesses successfully completed New standalone entity named BASF Environmental Catalyst and Metal Solutions (ECMS), headquartered in Iselin, New Jersey As a global leader in catalysis and precious metal
Slide 15: Outlook 2023 for BASF Group
Outlook 2023 for BASF Group Outlook 2023 Adjusted forecast Previous forecast Sales €73 billion – €76 billion €84 billion – €87 billion EBIT before special items €4.0 billion – €4.4 billion €4.8 billion – €5.4 billion ROCE 6.5% – 7.1% 7.2% – 8.0% CO2 emissions 17.0 – 17.6 million metric tons 18.1 – 1
Slide 16: BASF - We create chemistry
O- BASF We create chemistry